How Clash Between Cement Majors May Put Smiles On The Face Of Nigerians

How Clash Between Cement Majors May Put Smiles On The Face Of Nigerians

By PHC Telegraph

There may be a price war among major cement producers in the  country as a result of conflicting business interests and what many weary Nigerians see as the current high cost of the product.

At the centre of the price war which is looming, is the seeming ongoing industry fight between the Dangote Group and BUA for the control of the cement market.

The cost of cement which is largely produced locally is driving up costs in other sectors, particularly in the housing and road construction as well as other allied sub sectors.

At the moment, a bag of cement is sold in the open market between N5,000 and N5,500 a bag.

Ordinary Nigerians across the country who are groaning over the spiralling cost of cement want the cost of the product reduced.

The Dangote Group is in the forefront of the cement industry and its ongoing activities in the marketplace in pursuit of profits and the expansion of its operations impact on the price of any bag of cement sold in Nigera.

Increasingly, the business practices of the company has come under the radar of Nigerians, with some accusing it of selling the product cheaper across the border.

Dangote has vehemently denied the allegation, saying there is no iota of truth in such claims.

Now, it is contending with another claim that it intends to bring down the price per bag of cement from N5,500 to N2,700.

In its reaction, the management of the Dangote Group has said the information did not emanate from it.

According to the Kano Chronicle, “The Management of Dangote Group has unambiguously debunked the false and misleading information that it has reduced the price of cement from N5500 to N2700 effective October 1st.”

Kano Chronicle described the news making the rounds, which had brought some relief to ordinary Nigerians, as fake.

Nonetheless, the aspiration among Nigerians and some industry players for a drop in cement prices is not waning in any way.

BUA, a major rival of the Dangote Group is insisting that price reduction is indeed very possible.

Abdul Samad Rabiu, Chairman, BUA Cement Plc who visited President Bola Tinubu at the Villa re-iterated his commitment towards cement price reduction

“We plan to commiss-ion 2 new cement lines [6 million tons] by the end of this year”, Rabiu told newsmen after he emerged from the closed door meeting.

He revealed that the commissioning of the two lines is “aimed towards reducing the price of cement from it’s current level.”

“We can only do that because we produce BUA Cement locally”, Rabiu who recently won a best CEO award in Africa added.

BUA’s new production lines which are under construction in Sokoto State are expected to come on stream between December this year and January next year.

The company is hoping that President Tinubu who is battling to see how prices of various commodities can be brought down would be on hand to commission the two lines.